Shares of Pandora Media were sinking as much as 9 percent in after-hours trading on Thursday, even though the digital-music company posted quarterly earnings that exceeded the expectations of analysts.

Pandora said Thursday that it lost $28.9 million during the first quarter, or 13 cents a share when adjusted, which is a penny better than predicted. Revenue was $194.3 million, well ahead of the $177.7 million that analysts expected.

In the same quarter a year ago, Pandora lost 22 cents a share on $115.1 million.